Chapter 7: Strategies For Competing In International Markets

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This week I learn about Strategies For Competing In International Markets.

Many of the reason why companies want to enter in international market or foreign market. One of the reasons is to gain access to new customer. If we choose to compete foreign market, the company can find and get new customer from any other country around the world. It can make the company become popular such as mcd.  

 

The other reason is to achieve lower costs through economic scale, experience and increased purchasing power because when produce large amount it can achieve lower costs. Moreover, the reason why companies want to enter in international market is to further exploit its core competencies, to gain access to resources and capabilities located in foreign market and to spread its business risks across a wider market base.

Moreover, the effect of exchange rate shift that occur when the exchange rate falls, demand for goods will increases and when the exchange rate rises, demand for goods is decreases.

How to enter the international market?

1. Maintain a national (one-country) production base and export goods to foreign markets. License foreign firms to produce and distribute the firm’s products abroad. Give license other distributor who want to produce their product such as textile and Microsoft.  
2. Employ an overseas franchising strategy such as kfc
3. Establish a wholly-owned subsidiary by either acquiring a foreign company or through a “Greenfield” venture. Greenfield venture is do a newly project that particular country.
4. Rely on strategic alliances or joint ventures with foreign companies. 

Furthermore, this chapter also focuses on three strategic approaches which is multidomestic strategy, global strategy and transnational strategy. Multidomestic strategy is a think-local, act-local. Each of the country that company enter based on the particular company and any decision of management will decentralized to subsidiaries.

Besides that, global strategy is think-global, act-global. This strategy exist and same in every strategy but nowadays, it is difficult to do a same strategy especially if company want to enter a different market. Last but not least, think-global, act-local known as a transnational strategy. It incorporates elements of both multidomestic and global strategy.

Study Case of THE DIGITAL AGE: SHALL I TAG ALONG?

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 Actually this is the second case study that given by Miss Ummi entitled "THE DIGITAL AGE: SHALL I TAG ALONG? ".

 The first case study is about Robin Hood. From this case, Rahim didn't give up even though there are a lot of challenges and he keeps trying until him successful now.

 In tutorial class, Madam Huda teaches us how to “marry” the strength & weaknesses with the opportunity & threats. I also learn how to give “name” for the babies that was born. It’s interesting!

In my opinion, Tows Matrix is difficult if do in personal because it need more ideas to think. Madam Huda said if we want to need more ideas, we have to read a lot of thing such as newspaper or magazines. So, Madam Huda asks me and my classmates to give an idea for complete SWOT analysis and TOWS matrix.

Finally, we are done to ‘’marry’’ and give the ‘’name’’ of babies. 

 

  

 

  

Thanks to Miss Ummi and Madam Huda..=)

Chapter 6: Strengthening a Company's Competitive Position

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From this chapter, I learn about offensive and defensive strategic that take the best opportunity to attack rivals and turn it to the company's defense strategy.

When we want to make a strategy, we should know the strength in our company. We can use the strength to attack rival. For example, the rivals good in their product. So, we can attack the rivals in the areas where they are weakest.

Moreover, I also learn about blue-ocean strategy. Blue-ocean strategies totally inventing to a new market segment or new industry those others never do it. For example, Starbucks Coffee is the first company that started drink coffee with luxury. Now, they come out with idea of having coffee at a casual place.

 

 

 There is horizontal scope and vertical group in the business.  Horizontal scope means the range of product and services segments that firm serves within its focal market. Horizontal also in the same industry such as Maybank….

 

 

  While vertical scope is activities that make up industry entire value chain system from raw materials to end consumer. In other words, Vertical is different industry and will involve forward and backward strategy.

 Last but not least, SPAC is acronym for Special Purpose Acquisition Company. In other word, SPAC is a new company and list in Initial public Offering (IPO) to get investment from investor and make a business. 

article today

Assalamualaikum..

Articles for today: Legoland Malaysia Set To Be Asia's Leading Family Resort Destination

JOHOR BAHRU: Legoland Malaysia, a water theme park opening scheduled for next month and 249 hotel rooms in 2014, will be the main family destination resort in Asia. Manager, Siegfried Boerst, said the combination of theme parks and hotels, resorts in Asia's first Legoland visitors wants to spend more valuable time on the theme. RM720 million parks with 40 interactive games, Shows and Attractions, celebrate its first anniversary last Sunday. Boerst said this year was a very Successful given the number of more than one million visitors expected. “This is a great success’’, he told Bernama in an interview.


  

Siegfried Boerst 

He said the water park and hotel to be opened, Legoland want to market it as a family destination resort major Southeast Asia. “We want people to come here and spent two to three days to visit other destinations nearby. We want to make it attractive for visitors from China, India, and Australia to be some time in Malaysia’’, he said. Said Boerst, Legoland Malaysia is working closely with Tourism Malaysia and other agencies to promote Visit Malaysia Year 2014. About Hotel Legoland, which is expected to open in December for the holiday season in Malaysia and Singapore, he said, all 249 rooms have the Legoland theme of family vary. “We want to expand Legoland experience to the rooms’’, he said, adding that the ministry is working hard with the contractors and their partners to ensure that the hotel began receiving guests in the holiday period of December. - BERNAMA 

I am feel happy and enjoy when go to Legoland. it takes half an hour from my house.

Question Generic strategies

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Today, I want to answer the question that given by Miss Ummi that related topic of generic strategies.

Low cost provider define as a business that who want to buy the item at a lower price and all the cost is more lower than rival. For example Air Asia focused that customer who wants to buy the ticket at the low price. So, Air Asia is cheaper than MAS.

Moreover, focused differentiation means that their product is luxury item, focused on different segment, and the business has a market niche such as JW Marriot. Everyone knows that JW Marriot is the some of the luxury. This brand more focused on group high class people.

   

Broad Differentiation is do not have market niche but the product still has differentiation and the price is affordable. In an example, IKEA is have a differentiation. The product also luxury item but the price is affordable with their product and everyone also can buy and get it.

  

Furthermore, focus low cost is that their business has an owned market niche. For example is MYDIN. Mydin is low cost and have their own target which is customer can buy an item in bulk.

In addition, best cost provider means that their business give more value for the money by offering the quality product at a lower cost than rivals. For example is Toyota.

Chapter 5: Generic Competitive Strategies

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Today I learn about the Five Generic Competitive Strategies. It develops by Michael Porter. This topic related to competitive advantage that company should gain. Basically, company organization will employ either that one of the five generic important.

Why do strategies differ? There are two key factors that distinguish one strategy from another.

-Firm’s market target broad or narrow.

-In terms of the competitive advantage pursued linked to low costs or product differentiation.

  

  There are five strategies which are:

1) Low cost provider

2) Broad differentiation

3) Focused low-cost

4) Focused differentiation

5) Best-cost provider.

Chapter 4 : Evaluating a Company's Resources, Capabilities, and Competitiveness

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Today, I learned about internal environment. Best indicators suitable for implementation based on financial strategic objectives and above-average industry performer.

The important for this topic is the meaning of resources, capabilities and competitive advantage. Resources are a productive input or competitive asset that is owned or controlled by a firm. It can be tangible and intangible resources in the company. Capability is a skill and the capacity to utilize the resources. In my word, competitive advantage is some of the factors that cause others cannot imitate. Once people imitate, we have no competitive advantage anymore such as Toyota started operate with lean manufacturing, but Honda imitate operation system, so Toyota have no competitive advantage.

 

 Furthermore, identify the company SWOT analysis is important to compete with other company in the market. SWOT Analysis is a powerful tool for sizing up a firm’s:

- Internal strengths (the basis for strategy)

 -Internal weaknesses (deficient capabilities)

 -Market opportunities (strategic objectives)

 -External threats (strategic defences)

  

For instance, if the workers are lack of skill, company can send them to any seminar or program that related with their courses to encourage and give them more knowledge. The company can make a conclusion and identify the strategy improvement.

  Moreover, value chain identifies the primary internal activities that create and deliver customer value and the requisite related support activities.

Last but not least, benchmarking is involves improving a firm’s internal activities based on learning other companies’ “best practices.